Marketing research defined

“The systematic collection of information on existing or potential markets for analysis and subsequent action”

Why do we need marketing research

•Make the right choice

•Deliver the best to your customer

•Minimise risk

•Maximise your profits

British airways. Service rethinking

• Research conclusions. Business customers don’t care about the service on board - just want to sleep

• Marketing decision: Option of having dinner at the airport and a possibility to sleep on board

• Result: British Airways is one of the leading airlines in world

Dove. Product repositioning

• Research conclusions. Most women are not happy to watch only young and perfect bodies in advertising

• Marketing decision: To alter the typical advertising cliché.

• Result: Cannes Lions award

Marketing research =

Market research

Consumer research

Market research case

• A french manufacturer of sausissons “Le Parisien” is looking to develop its foreign operations and head for Asia. Asian markets are booming and at a first glance Indonesia sounds like a good idea to begin with.

• What kind of information about the indonesian market “Le Parisien” should be looking for.

Market research • Market research

–Market size

–Market segments and their share

–Market and segment leaders and their positions

–Competition: Brands and their positions, Variety

–Prices, distribution channels

–Trends

Your sources of information

• Government statistics institutions

• Trade associations

• Internet

• Research companies

• Wherever you can!

Market size

Market size

= x Market size

Volume of product consumed

Price

?

Market size

= + Volume of product consumed

Production Import - Export

Market potential

Current market

capacity

Potential market capacity

Market size potential

= х Volume of product consumed

Number of consumers

Consumption standards

Raise awareness Raise your customer

Market size potential

= х Consumption standards

Frequency Standard use (1 serving)

Communicating different consumption situations

Forming consumption standards

Market capacity potential

= + Volume of product consumed

Initial purchase

Additional purchase

Raise awareness Stimulate trial Free samples

Welcome bonuses Give money

Product range Accompanying

products or service

CRM Discounts

New products Product

modernisation

Repeat purchase +

Where to start

“If you don’t know where you are going, It doesn’t matter which route you take”

The Cheshire cat

Points to consider Objectives

Method

Sample

Analysis

Resources

• What do you need to know?

• How best you will get the results?

• From who?

• What will you do with the information?

• Budget, etc/

Objectives • Be specific and precise

“A well described problem is half of the problem solved”

• Keep the objective simple

• Be honest with yourself

• Examples:

• Why the sales of product X are low?

• Why people buy product X? What do they like about it? What the don’t like?

• Why people don’t buy? What they don’t like in it? What product do they buy? If they bought it previously why did they stop (very valuable information)

MARKETING RESEARCH plays 3 functional roles: –Descriptive function (presenting facts about

something. E.g. what is the historic sales trend in the industry? What are the consumers’ attitudes toward a product and its advertising?)

–Diagnostic function (where data is explained, e.g. What was the impact on sales when we changed the design of package?)

–Predictive function (How can we best take advantage of opportunities as they arise in the ever-changing marketplace?)

Methods Depends on the objectives and budget

• Qualitative research

• Quantitative research

• Monitoring

• Experiments

• Examples:

• A focus group is a qualitative method

• A hall-test is a qualitative\quantitative method

• Survey research – qualitative method

•Secondary research

•Primary research

Sample • Depends on the method of research

• Influences budget

• Much smaller in qualitative research, bigger in quantitative research

• Examples:

• A focus group would typically consist of 8-12 people

• A hall-test – 100-150 people

• A survey – 100-500 people

Analysis • Depends on the type of research and

research objectives

• Examples:

• Focus groups – you have the scripts of what people said and conclusions+recommendations

• A survey result would be numbers – averages, numerical conclusions

QUALITATIVE VS.

QUANTITATIVE

•Qualitative research

Bla, bla bla

Qualitative research

• Used to describe attitudes, feelings and motivations, good to generate hypotheses

• Is unstructured

• Is not subject to quantification

• Examples:

• Why do you like this milk?

• How does this advertising make you feel?

• What the word “fashion” means to you?

Quantitative research

How many fingers do you see?

Quantitative research

• Used to describe facts, preferences, prove hypotheses

• Provides digital data

• Is subject to statistic analysis

• Examples:

• How often do you go food shopping?

• How many times a day do you drink tea?

• Do you agree that coffee is not good for you?

• Dyhotomous questions. Do you eat meat?

• Example: Yes/No

• Likert scale. Is this a good movie?

• Example: Strongly agree-agree-neither agree nor disagree-somewhat disagree-Strongly disagree

• Rating questions.

• Example: Rate from 1 to 10 how you much you are satisfied with the weather today?

• Where 1 very satisfied, 10 very unsatisfied

• Multiple-choice questions. Which brands do you use?

• Example: a) Timotei, b) Pantene, c) Clear.

• Open-ended questions

• Example: Why you don’t like this type of juice?

•Consumer insights\Consumer satisfaction research

•Product\brand research

•Advertising research

Most often type of research

Focus groups

Most often used methods

• Hall tests

• Interviews

• Mystery shopping

• Consumer panel

• Retail audit

Interview

Consumer panel

Hall-test

Mystery shopping

Research companies

And who can do all the research

for me?

Client and agency • Filter the agencies and choose

the most appropriate

• Fill in the research brief with objectives

• Analyse the commercial offer – the research methods, sample configuration, budget

• Give feedback to the questionnaire, guide, incentives, etc.

• Control the research “in the field”

• Get the results

• Receive the brief, and suggest the most appropriate methods to the research objectives. Discuss with client .

• Design screener/questionnare/guideline.

• Find the resources: interviewers/moderators

• Recruite respondents

• Present results

I swear I’m telling you the truth

Tips and tricks

Pepsi

Coke

vs.

Tips and tricks for you

• Try

3) Always do a pilot

test

4) Ask the right

questions